CAMS · Question #8
CAMS Question #8: Real Exam Question with Answer & Explanation
The correct answer is A. Financial institutions need to assist competent authorities in fighting terrorist financing through D. Financial institutions should apply extra due diligence whenever they see suspicious or irregular. Statement A describes the general role of financial institutions in the fight against terrorism, while statement D describes the specific due diligence measures that financial institutions should apply to customers engaged in high-risk sectors or activities. Statement B and C are
Question
Options
- AFinancial institutions need to assist competent authorities in fighting terrorist financing through
- BFinancial institutions need to continuously analyze the types of activity related to terrorist
- CFinancial institutions should have financial intelligence units dedicated to the investigation of
- DFinancial institutions should apply extra due diligence whenever they see suspicious or irregular
Explanation
Statement A describes the general role of financial institutions in the fight against terrorism, while statement D describes the specific due diligence measures that financial institutions should apply to customers engaged in high-risk sectors or activities. Statement B and C are not part of the Wolfsberg Group's document, and they are not accurate descriptions of the role of financial institutions in the fight against terrorism. Statement B is too vague and unrealistic, as financial institutions cannot guarantee to drive down terrorism by analyzing activity types. Statement C is too narrow and prescriptive, as financial institutions may not have the resources or the mandate to create dedicated financial intelligence units for terrorist financing.
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